How strong are my golden handcuffs

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MAKsdad
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How strong are my golden handcuffs

Post by MAKsdad »

My company has announced a full time return to office beginning September 1. For a variety of reasons, remote work has really suited me and my family's dynamic, and I'm thinking about retiring rather than go back full time into the office. From a retirement standpoint, I am not really concerned about the numbers (my spouse and I are both 44, and we have a projected WR of right around 1.5% right now).

The issue is golden handcuffs. If I walk away at the end of August, I'm leaving a lot of money on the table. I could add another 4% to our current net worth if I worked through the end of the year, due to equity vesting and earning my '21 bonus (I'm reluctant to post the actual $ amount I would be foregoing just because I feel like it would bias the discussion).

Long story short, I don't feel like I need the extra money, but the practical side of me thinks that I would be a moron to pass it up over 4 months of work.

Any useful insights?
Last edited by MAKsdad on Tue Jul 27, 2021 12:31 pm, edited 1 time in total.
Afty
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Re: How strong are my goldern handcuffs

Post by Afty »

I’d probably stick it out for the 4 months. What would happen if you refused to come back to the office? Would they really fire you, and would it take >4 months? :evil:
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JoeRetire
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Re: How strong are my goldern handcuffs

Post by JoeRetire »

MAKsdad wrote: Tue Jul 27, 2021 10:14 am I could add another 4% to our current net worth...

I don't feel like I need the extra money...

Any useful insights?
We each get to decide how much we like handcuffs - golden or otherwise.
Last edited by JoeRetire on Tue Jul 27, 2021 10:25 am, edited 1 time in total.
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retiredjg
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Re: How strong are my goldern handcuffs

Post by retiredjg »

How much is having a little more money (that you apparently do not need) going to affect you?

How much is going back to the office going to affect you?
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anon_investor
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Re: How strong are my goldern handcuffs

Post by anon_investor »

Afty wrote: Tue Jul 27, 2021 10:20 am I’d probably stick it out for the 4 months.
+1. For a 4% boost to NW it sounds worth it.
Last edited by anon_investor on Tue Jul 27, 2021 10:23 am, edited 1 time in total.
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TimeRunner
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Re: How strong are my goldern handcuffs

Post by TimeRunner »

Retire Dec 31, then get paid for your unused vacation next January. :beer
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Re: How strong are my goldern handcuffs

Post by TheLaughingCow »

How much vacation time do you have saved up? Maybe you can take vacation until the end of the year, or some sort of sabbatical.
Onlineid3089
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Re: How strong are my goldern handcuffs

Post by Onlineid3089 »

I'm torn. If I could gain that much by staying four months, I'd probably stay. However, if I could retire and comfortably live off a 1.5% withdrawal rate I would probably already be retired making the entire question moot.
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Re: How strong are my goldern handcuffs

Post by sailaway »

Honestly, if I were at a 1.5% SWR, I would put up with 0 BS. I would try to continue to work from home if I were enjoying the work, but there is always another golden handcuff around the corner.

However, I recognize that others would say the same thing about our 3.5% SWR and we are also waiting out another 4 months, and it wouldn't surprise me if he pushes it another 6 months after that.
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neurosphere
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Re: How strong are my goldern handcuffs

Post by neurosphere »

But if you stay 4 months you'll only be EIGHT months from the new handcuff placed on you.

1.5% withdrawal rate? LEAVE NOW. Accidents happen. Heart attacks happen. Etc Etc Etc.
MAKsdad wrote: Tue Jul 27, 2021 10:14 amFor a variety of reasons, remote work has really suited me and my family's dynamic
Let's rephrase this. You will now be going into the office for 4 months. So your question is "How much is 4 extra months of 100% free time at home with my family worth?"
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Re: How strong are my goldern handcuffs

Post by 02nz »

TimeRunner wrote: Tue Jul 27, 2021 10:22 am Retire Dec 31, then get paid for your unused vacation next January. :beer
Or retire early next year. Max out 401k contributions at beginning of year, and get enough take-home pay to also fund Roth IRA. Some/all of that income (after 401k contributions) will be taxed at 0%/12%, meaning a much higher net pay on a per-day basis than the days worked at the end of 2021.
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Re: How strong are my goldern handcuffs

Post by delamer »

My husband delayed his retirement by about 2 months in order to get his bonus, pay for vacation time, and enjoy a small pension bump.

Much less than 4% of our net worth.

Once the end was in sight, the 2 months went quickly.

I suspect the same will happen with the 4 months for you. And as someone suggested, take whatever vacation time you can during that period.
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MAKsdad
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Re: How strong are my goldern handcuffs

Post by MAKsdad »

Some quick answers/comments:

- I have campaigned hard (probably too hard) for a hybrid schedule. My boss is tired of me telling him that my team should be hybrid. I could put him to an ultimatum and see how it goes, but I'd only do that if I was really ready, because I'm 90% sure I'd be fired if I refused to come back. Plus, it would be a terrible look for my team to have me just not show up when they are all coming in every day.

- We can't carry vacation over, so I only have about 3 weeks left.

- I'm not interested in playing other games like FMLA or fudging facts about what I need. I'm going to do it straight up, whether that means quitting or staying.

- Based on equity grants, next year's golden handcuffs are much less significant than what vests at 12/31/21, so this isn't a decision that is just going to roll over and happen every year.
scophreak
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Re: How strong are my goldern handcuffs

Post by scophreak »

neurosphere wrote: Tue Jul 27, 2021 10:34 am But if you stay 4 months you'll only be EIGHT months from the new handcuff placed on you.

1.5% withdrawal rate? LEAVE NOW. Accidents happen. Heart attacks happen. Etc Etc Etc.
MAKsdad wrote: Tue Jul 27, 2021 10:14 amFor a variety of reasons, remote work has really suited me and my family's dynamic
Let's rephrase this. You will now be going into the office for 4 months. So your question is "How much is 4 extra months of 100% free time at home with my family worth?"
Hmmm...appears to be an assumption not supported by current facts. I read the OP as the 2021 vesting and bonus would be paid out by staying the additional 4 months. My further assumption is that any 2022 bonus and vesting would occur 12 months (not 8 months) after the same 2021 events.

While I am typically a proponent of walking away and not looking back in scenarios such as this, I would strongly consider sticking it out for 4 months. As has already been mentioned above, there are likely several scenarios where these 4 months could be at least a hybrid of in office/work from home. Throw in the ability to take any accrued vacation during that time and it's likely much less than 4 months of actually going to the office.

I would consider the above even if I did not intend to spend the extra $. Personally, I would derive significant satisfaction in having the ability to donate the funds to causes that are dear to me. I would work 4 months to be able to make such an impact. One could even think of this as "retirement" as you are not working for yourself, but to pursue something that you are passionate about (albeit indirectly).
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Re: How strong are my goldern handcuffs

Post by runner540 »

What’s the weekly or hourly rate? I would stay for 4 months and take all my vacation, not take on extra stuff, etc.
It’s “only” 4% net worth on extremely high markets. If the markets pull back in the next year, that 4% cash payout becomes 5,6,7% increase to net worth.
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Re: How strong are my goldern handcuffs

Post by LadyGeek »

Discussions of dishonest behavior or bypassing the law is totally unacceptable.

I removed a post suggesting the employee give untruthful reasons for not coming into the office.
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MAKsdad
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Re: How strong are my goldern handcuffs

Post by MAKsdad »

runner540 wrote: Tue Jul 27, 2021 10:42 am What’s the weekly or hourly rate? I would stay for 4 months and take all my vacation, not take on extra stuff, etc.
It’s “only” 4% net worth on extremely high markets. If the markets pull back in the next year, that 4% cash payout becomes 5,6,7% increase to net worth.
True, but it's not a very significant change in withdrawal rate, which is more my concern. I don't honestly care about how much money I have, as long as I have enough.
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Re: How strong are my goldern handcuffs

Post by anon_investor »

MAKsdad wrote: Tue Jul 27, 2021 10:49 am
runner540 wrote: Tue Jul 27, 2021 10:42 am What’s the weekly or hourly rate? I would stay for 4 months and take all my vacation, not take on extra stuff, etc.
It’s “only” 4% net worth on extremely high markets. If the markets pull back in the next year, that 4% cash payout becomes 5,6,7% increase to net worth.
True, but it's not a very significant change in withdrawal rate, which is more my concern. I don't honestly care about how much money I have, as long as I have enough.
If you have enough, tell your boss you want to WFH or you walk, done.
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Re: How strong are my goldern handcuffs

Post by Independent George »

MAKsdad wrote: Tue Jul 27, 2021 10:14 am My company has announced a full time return to office beginning September 1. For a variety of reasons, remote work has really suited me and my family's dynamic, and I'm thinking about retiring rather than go back full time into the office. From a retirement standpoint, I am not really concerned about the numbers (my spouse and I are both 44, and we have a projected WR of right around 1.5% right now).

The issue is golden handcuffs. If I walk away at the end of August, I'm leaving a lot of money on the table. I could add another 4% to our current net worth if I worked through the end of the year, due to equity vesting and earning my '21 bonus (I'm reluctant to post the actual $ amount I would be foregoing just because I feel like it would bias the discussion).

Long story short, I don't feel like I need the extra money, but the practical side of me thinks that I would be a moron to pass it up over 4 months of work.

Any useful insights?
If we were talking about 12 months, or if you were over 60, I'd say to just walk away. But under the circumstances, I'd just tough it out for four months; the other question is how much notice do you need to give?
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Re: How strong are my goldern handcuffs

Post by LadyGeek »

I left unvested RSUs on the table when I retired. It wasn't 4% of my net worth, as I just a lowly employee. However, it was tangible dollars. Since it was money I didn't have and didn't need, I walked away.

Reading between the lines, you are at the point of "I don't want to come into work any more." That's the only reason you need to retire. If you stick it out for another 4 months, the company will find another reason to keep you chained to the job.

The end of August is the peak of summer. Enjoy the outdoors time before the weather turns cold. Compare going on a nice leisurely walk in the middle of the day vs. mucking around in an office. Draw your line in the sand and walk away (literally and figuratively).
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Re: How strong are my goldern handcuffs

Post by winterfan »

I'd stay, but I think four months is nothing and a 4% payout is worth it. That will take your right up to the holidays and then you can leave. If it were one more year or two, then no.
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MAKsdad
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Re: How strong are my goldern handcuffs

Post by MAKsdad »

sailaway wrote: Tue Jul 27, 2021 10:30 am Honestly, if I were at a 1.5% SWR, I would put up with 0 BS. I would try to continue to work from home if I were enjoying the work, but there is always another golden handcuff around the corner.
Would the raw dollar amount of the golden handcuffs matter to you if you were at that WR? Intellectually I agree with what you're saying here, but practically speaking, the dollar amount is enough that I am hesitating.
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Re: How strong are my goldern handcuffs

Post by MAKsdad »

LadyGeek wrote: Tue Jul 27, 2021 10:52 am I left unvested RSUs on the table when I retired. It wasn't 4% of my net worth, as I just a lowly employee. However, it was tangible dollars. Since it was money I didn't have and didn't need, I walked away.

Reading between the lines, you are at the point of "I don't want to come into work any more." That's the only reason you need to retire. If you stick it out for another 4 months, the company will find another reason to keep you chained to the job.

The end of August is the peak of summer. Enjoy the outdoors time before the weather turns cold. Compare going on a nice leisurely walk in the middle of the day vs. mucking around in an office. Draw your line in the sand and walk away (literally and figuratively).
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Re: How strong are my goldern handcuffs

Post by rob »

A few months from Sept would be an easy call for 4% of NW..... Use some (all?) PTO and you have thanksgiving & xmas (granted also YE if that matters to you)....

Just make sure you know the requirement for bonus payout... In my case I have to be employed when it's paid out in March from the prev year.... so for me it would be 7 months.
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Re: How strong are my goldern handcuffs

Post by delamer »

MAKsdad wrote: Tue Jul 27, 2021 10:54 am
sailaway wrote: Tue Jul 27, 2021 10:30 am Honestly, if I were at a 1.5% SWR, I would put up with 0 BS. I would try to continue to work from home if I were enjoying the work, but there is always another golden handcuff around the corner.
Would the raw dollar amount of the golden handcuffs matter to you if you were at that WR? Intellectually I agree with what you're saying here, but practically speaking, the dollar amount is enough that I am hesitating.
But at the same time, you said earlier that you don’t care how much money you have…

I’m not trying to give you a hard time, just pointing out that you know the parameters and it doesn’t matter what other people would do in the same situation.
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Re: How strong are my goldern handcuffs

Post by psteinx »

The withdrawal rate seems low, but keep in mind:

* You're much younger than most folks at retirement. No SS for a while, on your own for health insurance. And a long expected lifespan - maybe 50+ year planning horizon vs. ~30 that's more typical around here.

* Interest rates are really low. We can debate expected stock market returns, but nominal interest rates are plain to see and real (TIPS) rates, while subject to a bit of debate-ability (measures of inflation, etc.) are also reasonably transparent, and really low by historical standards. 10 year TIPS at -1%, versus "normal" that's ~2 percentage points higher. IMO, equity expected returns, while tough to forecase, build roughly on safer bond returns, and low expected returns across the investing landscape shave safe withdrawal rates over long time horizons (i.e. 50+ years) significantly, relative to common discussions around here which are mostly based on high-ish historical rates of return.

Is 1.5% doable? Yeah, probably (...if you're willing to economize later if need be).

But, IMO, it's not as rock solid as you might think.
Last edited by psteinx on Tue Jul 27, 2021 11:07 am, edited 1 time in total.
Flora
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Re: How strong are my goldern handcuffs

Post by Flora »

Stay 4 months and then contribute the additional income to a donor advised fund.
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Re: How strong are my goldern handcuffs

Post by Xrayman69 »

Leave today and let this opportunity open for someone’s homes passionate about the job and activities so as to advance the ball going forward.

Sometimes it’s the “man” who is giving us “permission” to leave a job we don’t like to pursue something else. You’ve prepared for this day and are good with it.

Literally asking someone would you go to jail for X dollars. Each has a number, at zero it’s zero. At 100K you will get some buyers, at 1M you get more at 10M you’ll get more takers. It seems this number is not enough so leave.
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Re: How strong are my goldern handcuffs

Post by Triple digit golfer »

Rich people problems.

At this point it is a matter of willingness to trade your time for what sounds like a substantial amount of money that you don't need.

Only you can decide if it's worth it.
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Re: How strong are my goldern handcuffs

Post by Sic Vis Pacem »

It sounds like you're looking for different ways of framing the question. You've already indicated the money is not material to your overall financial plan or SWR, but hinted its enough objectively to give you pause.

You're in the enviable position to dictate your fate. If WFH is the line in the sand, tell your boss, and if they do not agree you walk. Or if there's a compromise position (2 days/wk in the office) that makes the number make sense for you, make your stand there. No one here can help with what you're willing to trade.

Personally, and this advice is worth what you're paying for it, I'd find a way to stick out four months, assuming going to the office was not a significant health risk to you or your family. And assuming those four months are not truly significant for other reasons (i.e., time with a terminal family member or the like). While all our time is fleeting and irreplaceable, a few months while the world is still a little weird would be an OK trade-off for me.

You're a young man, and that 4% could do a whole lot of compounding between now and whenever.

Cheers on putting yourself in a position to have such a dilemma, and my best to you on solving it.
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Re: How strong are my goldern handcuffs

Post by Paradise »

I have a number and once I hit it, I’m walking away from my corporate job, handcuffs or not, to soft retirement. As others have pointed out, there will always be the next bonus, RSU, incentive. It helps the decision to approach it objectively instead of subjectively.
Last edited by Paradise on Tue Jul 27, 2021 11:14 am, edited 1 time in total.
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Quirkz
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Re: How strong are my goldern handcuffs

Post by Quirkz »

For four months and 4%, I probably would wait, but it's win-win either way you look at it. Congratulations!
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Re: How strong are my goldern handcuffs

Post by an_asker »

MAKsdad wrote: Tue Jul 27, 2021 10:41 am Some quick answers/comments:

- I have campaigned hard (probably too hard) for a hybrid schedule. My boss is tired of me telling him that my team should be hybrid. I could put him to an ultimatum and see how it goes, but I'd only do that if I was really ready, because I'm 90% sure I'd be fired if I refused to come back. Plus, it would be a terrible look for my team to have me just not show up when they are all coming in every day.

- We can't carry vacation over, so I only have about 3 weeks left.

- I'm not interested in playing other games like FMLA or fudging facts about what I need. I'm going to do it straight up, whether that means quitting or staying.

- Based on equity grants, next year's golden handcuffs are much less significant than what vests at 12/31/21, so this isn't a decision that is just going to roll over and happen every year.
Sounds like it's a one time thing and a lot of money is on the table.

Here is my suggestion - if you are honestly not too worried about catching Covid from F2F work (everyone you would closely interact with is vaccinated and/or you're not in a cubicle environment), I would suggest sticking it out for the next four months then quit. Covid is the only variable that I would consider in this equation. All others could happen any time anyway.
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Re: How strong are my goldern handcuffs

Post by AZAttorney11 »

Is it really four more months? You said you've got three weeks of vacation left, plus you'll presumably have time off for Thanksgiving and Christmas. Sounds like the decision is really about working another three months.
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Re: How strong are my goldern handcuffs

Post by Colorado Guy »

MAKsdad wrote: Tue Jul 27, 2021 10:14 am I could add another 4% to our current net worth if I worked through the end of the year, due to equity vesting and earning my '21 bonus.
Regarding the bonus, you may need to stay an additional x months until the bonus is paid out. My former company paid out bonuses to employees who were working the previous year, and still there through February, otherwise the bonus was lost.

That is not as bad as it sounds. Only 2 more months, possibly with vacation time padding, and training your successor, and perhaps some company traveling to remote offices, potentially working more as a consultant. Just knowing you are leaving will remove a large amount of daily life stress.
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Re: How strong are my goldern handcuffs

Post by humblecoder »

MAKsdad wrote: Tue Jul 27, 2021 10:14 am My company has announced a full time return to office beginning September 1. For a variety of reasons, remote work has really suited me and my family's dynamic, and I'm thinking about retiring rather than go back full time into the office. From a retirement standpoint, I am not really concerned about the numbers (my spouse and I are both 44, and we have a projected WR of right around 1.5% right now).

The issue is golden handcuffs. If I walk away at the end of August, I'm leaving a lot of money on the table. I could add another 4% to our current net worth if I worked through the end of the year, due to equity vesting and earning my '21 bonus (I'm reluctant to post the actual $ amount I would be foregoing just because I feel like it would bias the discussion).

Long story short, I don't feel like I need the extra money, but the practical side of me thinks that I would be a moron to pass it up over 4 months of work.

Any useful insights?
Adding 4% to your net worth for four months of working in the office seems like a no-brainer to me. Unless working in the office full time for four months is that intolerable, I would do it.

Four fewer months of retirement of what is likely to be a 40+ year retirement is just a drop in the bucket.

Also, with such a long retirement, having some extra cash in ones pocket in case of contingencies seems like a good thing.

And all you have to do is work four months in the office.

Finally, if you have vacation left, that would further reduce your time in the office.

Honestly, seems like a no brainer to me.
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Re: How strong are my goldern handcuffs

Post by neurosphere »

scophreak wrote: Tue Jul 27, 2021 10:41 am
neurosphere wrote: Tue Jul 27, 2021 10:34 am But if you stay 4 months you'll only be EIGHT months from the new handcuff placed on you.
Hmmm...appears to be an assumption not supported by current facts.
Sorry, was trying to be playful with this comment and it was ill phrased. What I meant was, after 4 more months he would then be only "8 months" from again being "only 4 months" away from potential year-end bonuses. :D Or more simply that after 4 months, then it's only 12 more months to what might be another big payout. There is always some other milestone one can point to, even when one "has enough". But I'm definitely biased by the fact that every day I see healthy people the OPs age get very sick, disabled or die. :(
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Re: How strong are my goldern handcuffs

Post by campy2010 »

Given your young-ish age, having that extra cushion might make a difference at some point. Personally, I would plan what the next 4 months would look like and then decide. For example, what are the risks of being let go before the equity vests if there are hints you're planning to give 2 weeks notice? Planning around this might mean giving notice on 1/2/2022 and sticking around into the first 2 weeks of 2022, which extends your 4 month timeline. Sketch out your holiday plans for Thanksgiving and the December holidays and how you would use those 3 weeks of PTO (Fridays off in November/December or take all the time at once). Then weigh the plan versus what you and your family would do with freedom for those 3-ish months.

Definitely celebrate with a big New Years freedom celebration and a vacation in January.
MJS
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Re: How strong are my goldern handcuffs

Post by MJS »

Your walking away from a big pot of money might benefit your team and peers. What else could be more convincing to management about the value of allowing people to work from home? Enjoy your autumn days!
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Re: How strong are my goldern handcuffs

Post by T4REngineer »

I generally think this forum is way to conservative but I would lean towards working the 4m.

*You are only 44 so the chances of a black swam health event are lower than 64, not zero - but lower
*You are only 44 so the increased growth on that extra 4% is going to compound nicely over 50 years

On the other hand, seems like you do not need the money and at the end of the day we all (hopefully) have to choose when we say "enough"

I would say the strength of your handcuffs is weak, they are only there in your mind. You have a 1.5%WR - you do not have Golden handcuffs imho (but my view on Golden handcuffs is something like waiting till a pension vests that will SIGNIFCANTLY change ones lifestyle or risk levels in retirement)

Congrats on being in this spot and best of luck in your choice
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Re: How strong are my goldern handcuffs

Post by KyleAAA »

Very weak. Your net worth might go up 4% by the end of the year anyway. Since you're only 44, maybe you could just quit and find another job at a more remote-friendly company. There's no shortage of them.
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Re: How strong are my goldern handcuffs

Post by sailaway »

MAKsdad wrote: Tue Jul 27, 2021 10:54 am
sailaway wrote: Tue Jul 27, 2021 10:30 am Honestly, if I were at a 1.5% SWR, I would put up with 0 BS. I would try to continue to work from home if I were enjoying the work, but there is always another golden handcuff around the corner.
Would the raw dollar amount of the golden handcuffs matter to you if you were at that WR? Intellectually I agree with what you're saying here, but practically speaking, the dollar amount is enough that I am hesitating.
Of course, if we were saving to a 1.5% WR, we would have a different view on things than we do with our less conservative WR goals, so it is easy to say I would do X. Honestly, if DH's manager pushes through the promotion this year, DH will likely do what it takes to stick around through the Fall 2022 vest to pick up the bigger chunk of RSUs. Please don't tell his manager that: it will make him try harder for the promotion if he thought it would entice DH to stick around longer.
BogleFan510
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Re: How strong are my goldern handcuffs

Post by BogleFan510 »

I wouldnt let money drive your decision one way or the other. As discussed, you are already not working for 'retirement needs money' that is done. You are working for 'legacy money' or 'luxury money.' It may still be worth it to work, as those type of payoffs are actually quite rare, despite them seeming readily available, due to the technology driven wealth creation event we have fortunately experienced.

I worked well past my retirement needs being funded, partly for financial benefits. But I also left significant money on the table, first by shifting from high pay corporate to a good pay government job, and then by leaving the government job's maximum retirement benefits behind, by retiring in early 50s. As it turns out we are way over funded for our modest lifestyle, but no regrets.

Seems like a work responsibilities 'downshift' for a more modest payout could be a good middle ground to seek with the current employer. It seems that negotiating less pay for more flexibility might be a good path.
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David Jay
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Re: How strong are my goldern handcuffs

Post by David Jay »

In my experience, once you have set a date to retire it is much easier to put up with the “stuff” that happens in the office, because you know it is temporary.

Do the 4 months, retirement will feel that much better when you leave the office for the last time.
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Re: How strong are my goldern handcuffs

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LittleMaggieMae
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Re: How strong are my goldern handcuffs

Post by LittleMaggieMae »

MAKsdad wrote: Tue Jul 27, 2021 10:49 am
runner540 wrote: Tue Jul 27, 2021 10:42 am What’s the weekly or hourly rate? I would stay for 4 months and take all my vacation, not take on extra stuff, etc.
It’s “only” 4% net worth on extremely high markets. If the markets pull back in the next year, that 4% cash payout becomes 5,6,7% increase to net worth.
True, but it's not a very significant change in withdrawal rate, which is more my concern. I don't honestly care about how much money I have, as long as I have enough.
Since it's not about the "money" - maybe it should be about the "emotion".
Will putting in your resignation two weeks before the September back to the office - make you feel like you are leaving any projects (or your job) in a "lurch"? Since you aren't going on to a new job and perhaps weren't intending to "retire" so suddenly - will you have difficulties reconciling this internally? Or would working till the end of the year (or a bit beyond) give you a more satisfying end to your career. I would imagine there would be a period of "grief" after quitting - as your old work life ends. I would want to "end my career" in a reasonable way if it was all about the emotion.


How much are 4 (or 5 if you work thru January 2022) months worth to you in time now. Are you ready to stop working? Or would a few months of mentally preparing for it be a better transition. Would a few months of "figuring out how much and where it will come from" and how much your families healthcare will cost and how best to acquire that healthcare make for a better transition? Will your finances require a few months of "adjusting" to make for a better transition? Can you plan to use up your vacation during the Holidays in order to spend more time with family at that traditional "family" time? Especially if the Holidays was a challenge to get/take vacation? You should be winding down your "job" at that point if you opt to work til the end of the year or a bit beyond.

Do you have a very good handle on your expenses (and the cost of healthcare) when your paycheck stops?
Have you put together a plan for how you will cover your expenses when your paycheck stops?

Have you totaled up all the financial pro's of easing into "retirement" over the course of say 4 or 5 months starting in September? Versus a "hard halt" on September 1st?

I'm not very good at changing the direction of my life on a dime or just up or making dramatic changes on the spur of the moment. Well, I might make a decision to change on the spur of the moment - but the actual doing the change usually takes me some time and planning. With that in mind I would be figuring out how and where my "not a paycheck" income would be coming from - and getting those ducks in a row. I would looking at how to get healthcare and getting those ducks in a row. I might play around with the numbers and see if being able to max all my tax differed/tax advantaged accounts as quickly as possible in 2022 was worthwhile before quitting. I would also be setting "my last day at work" date based on how those numbers work out in the long run. For me taking 4 or 5 months to smooth out/plan and accomplish a big change like no longer collecting a paycheck would be worthwhile on a mental/emotional/personal level.

In your Big Picture - I think working an additional 4 or even 6 months - isn't that big a deal. I would make sure you go into it with I am done working on this DATE and here are the milestones mapped out that get me to that date. That kind of plan will help you remember WHY you are quitting so you don't have to deal with the "jeez, if I just worked X more days - I'd get Y.! You will already KNOW all the pros/cons of being done by a specific date and will have done all the prep and are ready to go on your DATE -- so getting Y shouldn't be enough to derail your plan. If Y is enough to derail your plan - then maybe good for you! You've found something you value/worthwhile to you and your family .

You want to avoid the "if you don't know where you are going, any road will get you there." Know where you are going. It will make decisions along the road easier.
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JoeRetire
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Re: How strong are my goldern handcuffs

Post by JoeRetire »

MAKsdad wrote: Tue Jul 27, 2021 10:49 amI don't honestly care about how much money I have, as long as I have enough.
By definition "golden handcuffs" are about money.

If you don't know how much is "enough" for you, then you need to figure that out first.
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helloeveryone
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Re: How strong are my goldern handcuffs

Post by helloeveryone »

MAKsdad wrote: Tue Jul 27, 2021 10:14 am My company has announced a full time return to office beginning September 1. For a variety of reasons, remote work has really suited me and my family's dynamic, and I'm thinking about retiring rather than go back full time into the office. From a retirement standpoint, I am not really concerned about the numbers (my spouse and I are both 44, and we have a projected WR of right around 1.5% right now).

The issue is golden handcuffs. If I walk away at the end of August, I'm leaving a lot of money on the table. I could add another 4% to our current net worth if I worked through the end of the year, due to equity vesting and earning my '21 bonus (I'm reluctant to post the actual $ amount I would be foregoing just because I feel like it would bias the discussion).

Long story short, I don't feel like I need the extra money, but the practical side of me thinks that I would be a moron to pass it up over 4 months of work.

Any useful insights?
I favor working four more months to add 4% to net worth.
It's a really nice cushion even though you don't need more cushion.

But at age 44, 4 more months is absolutely a short time period relative to the decades of being retired you look forward to.

Curious - did you have an age at which you were planning to retire before this?
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Re: How strong are my goldern handcuffs

Post by Normchad »

You don’t need the money. And whenever you decide to leave, you will always leave money on the table. There is always another bonus or vesting event just around the corner……

If it really upset me, I wouldn’t do it for just 4%. After all it’s money you don’t need.

So just tell them you can’t come back, and see what happens. And if you have to leave, so be it. It’s probably not a big deal to them if you leave, and it’s probably not a big deal to you if you leave.
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TomatoTomahto
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Re: How strong are my goldern handcuffs

Post by TomatoTomahto »

OP, how responsive do you think management will be to a surge in Delta variant cases, even among the vaccinated? Not asking for medical opinions, but it is a fact that there is an increase in so called breakthrough cases.

I personally think that you could do 4 months standing on your head, but it’s your comfort, your summer, etc. Good luck.
I get the FI part but not the RE part of FIRE.
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